Insurance bill hits the home stretch
December 20, 2009 by admin
The Senate is nearing a vote on what promises to be amongst the most controversial pieces of legislation since the TARP program was unveiled late last year. This weekend, rumors started to swirl that a key Democratic Senator, Ben Nelson would consider supporting the legislation in exchange for more input in the bills language as well as additional funding to his state. As with almost every piece of government legislation, this type of political jousting adds in extra pork driving up the overall cost of the proposed legislation in order to secure votes from party members who have been riding the fence.
The hotly debated topic of public health care is now directly in the hands of the Senate who are promising to have a bill in place prior to the holidays beginning. The push for health care reform was a key part of the platform President Obama ran on in the past election and is likely to be one of the key parts of his legacy if it becomes a reality in the near future. The prospects of health insurance coverage for millions of Americans who are have no coverage or can’t afford their current coverage could be a welcome holiday gift to start the New Year. The economic tsunami of the past year as resulted in over three million job losses, further straining the health system with yet more people without health care coverage.
The key areas of contention with the proposed health care reform bill are centered around the public health care option. The impact of covering thirty million uninsured Americans is one that is driving legislators to work overtime in pushing the bill through before the new year. Health care insurance companies will no longer have the option of denying coverage for pre existing conditions, a key component of the new legislation. In addition, the new proposal will open up the option of consumers to shop for insurance companies across state lines, one of the areas that limit the coverage options and drives up the price in today’s private market.
The new health insurance program will be financed in part by the elimination of the payroll tax benefit currently in place. Currently, when an employee receives health insurance coverage, the payment amount is not taxed. The government will look to reduce this benefits based on the taxpayers income bracket and their family exemptions, in addition insurance companies that have higher rates would be subject to additional surcharges and levies to help fund the legislation.